HomeMy WebLinkAbout2416 Borrower and Lender rnvenant and agree as follows:
1. Payment of Principal and Interest. Borrower shalt promptly pay when due the principal of and interest on the indebtedness
evidenced by the Note, prepayment and latechargea as provided in the Note, and the principal of and interest on any Future Advances secured
by this Mortgage.
2. Fltttds for Taxes and Insurance. Subject to applicable law or to a written waiver by Lender, Borrowerahail pay to Lender on theday
monthly installments of principal and interest are payable under the Note, until the Note is paid in full, a sum (herein "Funds") equal to one,
t .+elfth of the yearly taxes and assessments which may attain priority over this Mortgage, and ground rents on the Property, if any, plus one
twelfth of yearly premium insiallmer?ls fur I+azard insurance, plus onrtwelfth ofyearly premium installments for mortgageinsurance, ifany,
al! as reasonably estimated initially and from time to time by Ixnder nn the basis of assessments and bills and reasonable estimates thereof.
The Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal or State agency
(including Lender if Lender is auchan institution). Lender shall apply the Funds to pay said taxes, assessments, insurance prrmiuu+a and
ground rents. (.ender may not charge for so holding and applying the Funds, analyzing said account, or verifying and compiling said
assessments and bills, unless Lender pays Borrower interest on the Funds and applicable law permits lender tomake such a charge. Borrower
and Lender may agree in writing at the time of execution of this Mortgage that interest on the Funds shall be paid to Borrower, and unless
such agreement is made or applicable law requires such interest to be paid, Lender shall not be required to pay Borrower any interest or
earnings on the Fttnda. Lender shall give to Borrower, without charge, an annual accounting of the Funds showing credits and debits to the
Funds and the purpose for which each debit to the Funds was made. The Funds are pledged as additional security for the sums secured by this
Mortgage.
If the amount of the Funds held by [.ender, together with the future monthly installments of Funds payable prior to the duedatea of taxes,
assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes, assessments, insurance premiums
:+nd ground rents as they fall due, such excess shall be, at BolTC/wer's option, either promptly repaid to Borrower or credited to Borrower on
monthly installments of Funds. If the amount of the Funds held by Fender shat! oat be sufficient to pay taxes, assessments, insurance
premiums and ground rents as they fall due, Borrower shall pay k? (.ender any amount necessary tomake up the deficiency within :10 days
from the date notice is mailed by [.ender k, Borrower requesting payment thereof.
Upon payment in foil of all sums secured by this Mortgage, lender shall promptly refund to Borrower any funds held by (.ender. If under
p:+ragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, Fender shall apply, no later than immediately prior
to the sale of the Property or its acquisition by [,ender, any Funds held by [.ender at the time ofapplication as a credit against the sums secured
by this Mortgage.
3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under the Note and
paragraphs 1 and 2 hereof shall be applied by (.ender first in payment of amounts payable to (.ender by Born,wer under paragraph 2 hereof,
then to interest payable on the Note, then to the principal of the Note, and then to interest and principal on any Future Advances.
d. Charges; Liens. Rorrowershall pay aN taxes, assessments and othc•rrharges, fines and impositions attributable to the Property which
n:ay attain a priority over this Mortgage, and leasehold payments or ground rent,, if any, in the manner pn,vidtd under paragraph `L hereof or,
if nut paid in such manner, by Borrower making payment, when due, dirc'e•tly to the payee therer,f. Burrower shall promptly furnish to Lender
ull notices of amounts due under this par-.+graph, and in the event Korrowcr shall make p:?ymc•nt dircrth•, Burn+wer shall promptly furnish to
Lender receipts evidencing such payments. Bc,rn,wer sh:+l! prumpth• discharg+• :u»• lien which has priority over this Mortgage; pmvided, that
B~>rrower shall not he required tudisc•harge any such lien su lung as lir,rn,wer sh:+ll age?r in writing to the payment of theubligation secured by
~u+•h lien in a manner acceptable to Ixnder, or shall in gc,c,d faith cuntcst such lien by, ur defe•nd enfi,nrment ufsuch Lien in, legal proceedings _
v, bleb operate to prevent the enforcement of the lien or fi+rfeiture ++f the Propr•rt}• ur am part therrrd.
5. Hazard Insurance. Burn,wer shall keep the impnn•ements now existing or hereafter ereMed on the Property insured against loss by
fi re• hazards included within the term "extended coverage," and such other h:?tards as 1 xrider may require and in such amounts and for such
periods as Ixnder may rcquim; pnw•ided• that Ixnder shall nut nrtuire that the amount of such nn•er.?ge exceed that amount of coverage
nrtuired to pay the sums see•ured by this Mortgage.
The insurance tamer pnn•iding the insurance shall I,e• chosen hr Borrower subjcr•t to :+ppn,r:+l by Lender. pn+rided, that such approval
shall not tx unrcasonabh• withheld. All premiums on insurance I,ulicies shall he• paid in the manner provider( under par,+gr.+ph'l he•rer,f or, if
not paid in such. manner, by Be,riower making p:p~ment• when due, din•c!h- te, the insur:mc•e carrier,
All insurance policies and renewals thereof shall be• in form acceptable to Lender and shall include:+standard mortgagedause in favor of
and in form acceptable to Ixnder. Ixnder shall have the right to hold the twlicic•s and renewals thereof, and Borrower shall promptly furnish to
, ,ender all renewal notices and all receipts of paid premiums. In the erect of loss, Borrower shat! giro prompt notice to the insurance carrier
and Ixnder- Lender may make prr,of of loss if nut made promptly br Burrower.
Unless Ixnder and Burrower otherwise agree, in writing, insurance, prc,ee•eds shall I,e' applied to restoration or repair of the Property
damaged, provided such resdm+tion or repair is er•unumically feasible and the security of this Mortgage is not thereby impaired. If such
restoration or repair is not economically feasible e+r if the scr•urity of this Mortgage woold lrc• impaired, the insurance proceeds shall be applied
to t he sums secured h}• th is Mortgage, w•i th the sate ::s. If :+ny, paid to burrower. I f the Property is abandoned by Borrower, or if Borrower fails to
re.;pond to [.ender within aO days from the date notice is maibd by l.c•nder to Borrower that the insurance carrier offers to settle a claim for
insurance benefif^4, Lender is authuriud to coller•t and apply the insurance pn,c•e'eds at bender's option either to restoration or repair of the
)'n,perty or the sums secured by this :Mortgage.
Unless Lender and Borrower otherwise agree in writing. any such application of pnx•ec'ds to principal shall not extend or postpone thedue
date of the monthly installmentsg referrer) to in paragraphs 1 and Y henr,f or change the amount of such installments, If under paragraph 18
hereof the Property is acquired by (.ender. all right, title and interest of Burrower in and to any insurance policies and in and to the proceeds
thereof resulting from damage to Property prior U, the, sale or acyulsitiun sh:+11 pass to (,ender to the extent of the sums secured by this
'1lurigage immediately prior to such sale or aertuisition.
6. Preservation and Maintenance of Property; Ixaseholds; Condominums; Planned ((nit Developments. Borrowershall keep
the Property in good repair and shall nut commit wane ur ;x•rmit imp:+irnumt ur deterior.+tiun of the Property and shall rnmply with the
prurisions of any lease if this Mortg:+ge is on Ie•ase•hold. If this Mortgage, is on a unit in a n,ndominium or a planned unit development,
Burrower shall perform all of lic+rn,wer's obligations under the der•lar-.+tiun or covenants cn•atingor governing the condominium or planned
unit development, the by-laws and regulations of the condominium or planners unit development, and constituent documents. If a
r+mduminium or planned unit development rider is exer•uted ht' Itr,rruwer :+nd n•curded together with this Mortgage, the covenants and
regiments of such rider shall I,c' incorpuraterl into :md shall amend and supplement the covenants and agreements of this Mortgage as if the
nder were a part hereof.
7. Protection of Lender's Security. If Korruwer fails to perform the rnvenanta and agreements contained in this Mortgage, or if any
action c,r proceeding is commenced which materially affects Ixnder's interest in the Property, including, but not limited to, eminent domain,
insolvency, code enforcement, or arrangements or proceedings involving a bankrupt or decedent, then (.ender at Lender's option,upon
notice to Borrower may make such appearances, disburse such sums and take such action as is necessary to protect Lender's interest,
rncludinq, but not limited to, disbursement of reasonable attorney's fees and entry upon the Property to make repairs. If (.ender required
mortgage insurance as a condition of making the loan secured by this Mortgage, Borrower shall pay the premiums-required to maintain
xuch insurance in effect until such time as the requirement fur such insurance terminates in accordance with Borrower's and Lender'e
written agreement or applicable law. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under
paragraph 2 hereof.
Any amounts disbursed by Lender persuant to this paragraph 7, with interest thereon, shall become additional indebtedness of
Borrower secured by this Mortgage. Unless Borrower and [.ender agree to other terms of payment, such amounts shall be payable upon
notice from (.ender to Borrower requesting payment thereof, and shall bear interest from the date of disbursement at the rate payable from
time to time on outstanding principal under the Note unless payment of interest at such rate would be rnntrary to applicable law, in which
event such amounts shall bear interest at the highest rate permissible under applicable law. Nothing contained in this paragraph shall
require Ixnder u, incur any expense or take any action hereunder.
c ~ ~'?X 31y PacE 2404